NAPEO recently sent out an email alerting their members of a scheme targeting PEOs and we wanted to make sure this was sent out to as many readers as possible to prevent anyone from becoming a victim.
NAPEO’s fraud alert stated the following:
“We have heard from a number of our members in the Midwest about an increase in fraud attempts on PEOs, where a purported legitimate client signs on and runs a pay card payroll. This new client provides a FEIN and in at least one case passed a credit check, but the ACH on the first payroll came back as “insufficient funds” and the client was nowhere to be found. Please be on alert that this is occurring, and let your local/state law enforcement agencies know if you have experienced payroll fraud. We have no reason to believe that this fraudulent scheme is limited to companies in the Midwest, but that is where we have been made aware that the recent activity has taken place.
NAPEO is creating best practices for its members to help guide the client vetting process. If you have any questions or have had this occur to your PEO, please do not hesitate to reach out to Farrah Fielder at ffielder@napeo.org.”
Hope all is well — Brian
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